Retail to remain strong in Japan

In 2020 rents are expected to rise in all major cities except for Tokyo, reflecting the tight supply-demand balance, predicts CBRE in its 2020 outlook.

There was robust leasing demand from retailers in 2019, particularly among those catering to inbound demand. Ginza high street rents have risen 1.6 percent since bottoming out in third quarter 2017, reaching JPY 258,000 per tsubo ($2,358 per square foot) in third quarter 2019. CBRE expects rents to continue rising moderately overall, and although the firm expects to see some downward move in 2020, rents over the next two years are forecast to rise by 1.4 percent. 2019 saw an increase in the number of stores with an emphasis on showroom or experiential features, rather than product sales. Among these, pop-up stores — short-term sales spaces that temporarily open to promote new-product launches or cater to seasonal demand — are attracting interest among retailers from a wide range of sectors. This format enables retailers to